The Firefish Thesis – Bitcoin-Backed Loans and the Architecture of Trust-Minimized Finance:
Igor explains the origins and mission of Firefish, a Bitcoin-native lending marketplace created in response to a real-life liquidity challenge faced by co-founder Martin. Rather than selling his Bitcoin, Martin sought to leverage it without counterparty risk. The pair, both veterans of traditional finance, were disillusioned by centralized crypto lenders like Celsius and BlockFi, which failed due to opaque, high-risk practices. Their answer was Firefish: a trust-minimized, transparent protocol using native Bitcoin tools such as multisig, time locks, and PSBTs to facilitate non-custodial lending.

The Firefish protocol allows users to lock Bitcoin directly on-chain. Borrowers propose terms—including tenor, currency, and interest rate—while lenders, including fiat-based institutions and retail investors, select from open order books. Interest rates range from 6–13% depending on tenor and currency. Instant loans carry a premium but are available immediately due to pre-committed liquidity. Firefish charges a 1.5% origination fee per loan. The protocol’s transparency is core to its ethos, with open documentation and plans for open-sourcing the code.

Use cases span retail and institutional: from paying import taxes and finishing home renovations to funding startups or mining operations without selling BTC. Borrowers hedge liquidation risk by maintaining low loan-to-value ratios (average ~40%) and topping up collateral. A planned “liquidation protection” tool offers borrowers grace periods to avoid forced sales.

Headquartered in Prague with EU and global stablecoin support, Firefish has over 10,000 users and has processed 1,400+ BTC in collateral. The firm is VC-backed, including a $1.8M round with Brains. Igor, once a trader and blockchain analyst, entered Bitcoin for the gains—but stayed for the philosophy, building Firefish to enable sovereign financial infrastructure for a decentralized world.